Local + regional deposit-taking banks. Quality varies enormously by management and credit discipline; most are commodities. The best regionals compound at 12-15% for decades - but the failures are total.
Industry leader
Avanza Bank Holding AB (publ) AZA.ST
Buffett-Fit: 91/100
Regional bank quality is best measured by ROE + loan-loss history + capital ratios. Sustained ROE above 12% across a full credit cycle is the screen - names like M&T Bank, First Republic (before SVB), Glacier Bancorp built compounder records that way. Buffett's rule: never own a bank you wouldn't deposit money at.
Sorted by composite quality score - ROIC, margin stability, balance-sheet strength, growth quality. Click any ticker for the full Buffett verdict.
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Educational framework analysis only. Not investment advice, not a recommendation, not personalized to your situation. Always do your own research.